Cambria Africa PLC Paynet and Adviser Update (1441I)
August 06 2019 - 10:29AM
UK Regulatory
TIDMCMB
RNS Number : 1441I
Cambria Africa PLC
06 August 2019
Cambria Africa Plc
("Cambria" or "the Company")
Paynet and Adviser Update
Paynet Update
Further to the announcement of 4 July, the Company confirms that
its legal representatives Titan Law, served summons on the Bankers
Association of Zimbabwe (BAZ) on behalf of Paynet Zimbabwe and
Payserv Africa seeking damages of US $100 million from BAZ and
related parties. The Company has been notified that BAZ entered an
appearance to defend.
Payserv Africa has sent all banks a copy of their outstanding
invoices reminding them that upon payment, they will be able to
transact through the Paynet platform. Despite the fact that Paynet
does not charge for receiving interbank payments, and supports all
bank gateways even if suspended, most banks have closed their
Paynet gateway stopping compliant banks from transacting with them.
Paynet Zimbabwe has reminded banks which have closed their gateways
that it services these gateways free of charge.
Paynet Zimbabwe has also protested to the Reserve Bank of
Zimbabwe that the closing of the gateways disturbs the orderly flow
of payments by compliant banks. This is especially true in absence
of a meaningful alternative automated bulk payment system. The
banks have failed to deploy an automated bulk payment system since
Payserv Africa suspended most banks for non-payment on 10 June.
So far as the Company and Paynet are concerned, the development
of an alternative system seems shrouded in secrecy, apparently to
the specific and punitive exclusion of Paynet. The Company is not
aware that there has been any disclosure by banks of the ownership,
directorship, or developers of such a platform and it would seem to
the Company that none of the 4,500 installations of Paynet have yet
been replaced by the new system.
In the meantime, Paynet continues to perfect its bulk payment
interface with EcoCash, Zimbabwe's largest mobile payment system
controlling approximately 80% of the volume of national payments
according to the latest statistics published by the Reserve Bank of
Zimbabwe. The Company is negotiating a proposed commercial
arrangement with EcoCash and believes if former users of its
software turn to EcoCash for bulk payments, it will be able to
recover some of the lost revenue from what the Company sees as the
collusive and vindictive actions it has suffered at the hands of
the BAZ and under the watch of the Banking Regulator.
If not successful, Cambria will need to significantly downsize
its operations in Zimbabwe as it continues to pursue its legal
recourse through the courts of Zimbabwe and potentially South
Africa and the United Kingdom.
The Company's CEO, Samir Shasha will be available in London from
12-15 August to meet with shareholders by appointment. Shareholders
can reach Mr. Shasha on his UK mobile +44-7813-919988. The Company
will continue to update the market on material developments in due
course.
Adviser Update
The Company confirms that SVS Securities Plc, as a result of its
market access being suspended by the LSE, no longer acts as broker
to the Company.
WH Ireland Limited is the Company's sole broker and nominated
adviser.
Contacts
Cambria Africa Plc: www.cambriaafrica.com
Samir Shasha +44 (0) 20 3287 8814
WH Ireland Limited: www.wh-ireland.co.uk
James Joyce / Matthew Chan +44 (0) 207 220 1666
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END
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